3.1.4.10 Method 1 - Calculating the Maximum Rate of FTB Part A

Summary

This topic provides information about calculating the rate of FTB Part A using Method 1 of the FTB rate calculator.

Method 1

Method 1 for calculating the maximum rate of FTB Part A applies when a recipient's ATI (1.1.A.20) does not exceed their higher income free area (1.1.H.10). It applies a 20% taper on ATI over the income free area to the recipient's maximum rate (1.1.M.26).

The income-tested rate of Method 1 cannot go below the base rate of FTB payable.

Act reference: FA(Admin)Act section 20A Indexed estimates, section 20B Indexed actual incomes

Policy reference: FA Guide 3.1.1.20 Current FTB Rates & Income Test Amounts, 1.1.I.85 Indexed income - actual or estimate (FTB)

Components of maximum rate of FTB Part A using Method 1

The components are:

• the standard rate (Method 1),
• large family supplement,
• FTB Part A supplement,
• multiple birth allowance, and
• rent assistance.

Policy reference: FA Guide 3.1.1.20 Current FTB Rates & Income Test Amounts, 3.1.4.30 Rent Assistance

Maintenance income test

The maintenance income test is only applicable under a Method 1 calculation for FTB Part A.

Act reference: FAAct Schedule 1 clause 10 Effect of certain maintenance rights, Schedule 1 clause 20 Effect of maintenance income on FTB rate

Policy reference: FA Guide 3.1.7 Maintenance Income Test

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Last reviewed: 2 January 2013